One key component for U.S. cannabis investors is which markets to target in a complicated and convoluted environment in which each state has its own unique set of rules, regulations and laws.

"It's not static," John Lykouretzos, CEO of FocusGrowth Asset Management, said during a panel discussion on the cannabis debt market Thursday at the Benzinga Cannabis Capital Conference at Fontainebleau Miami Beach. 

"We love the limited license states that are medical only."

The panel discussion included Lykouretzos; Travis Goad, managing partner at Pelorus Equity; Jack Mascone, head of capital markets at Seaport Global (NASDAQ:SGIIW); and Len Tannenbaum, CEO of AFC Gamma Inc (NASDAQ:AFCC).

Cannabis Investing State-By-State: Lykouretzos said he likes well-run companies in some of the early states to legalize cannabis.

"I'm not afraid of some of the OG states. I like Oregon, and I like Colorado," he said.

Tannenbaum said even the limited license states change, so investors have to watch the market dynamics closely.

"We have a lot of data and data collection. Pennsylvania prices are plummeting in terms of grows, so the grow in Pennsylvania is a lot less attractive than it was a year or two ago, but the dispensaries are still great," Tannenbaum said.

At the same time, Tannenbaum said he's excited about New Jersey, Missouri and Ohio and prefers companies that are vertical, operating as both growers and dispensaries.

New York Opportunities: New York legalized recreational cannabis in 2021, and licensed sales are expected to begin in 2022 or 2023.

Unfortunately, investing in the New York market is difficult at this point because of repeated delays and uncertainties, but Mascone said there are still opportunities in The Empire State. 

"From a lending case, New York is very investable, and institutional participants are excited about New York. I think those risks manifest themselves a lot more through the equity market valuation. But when you're at the top of the capital structure, New York is very viable," Mascone said.

Goad is also bullish on New York.

"We're actively targeting stuff in New York and looking at deals now. It's very investible," Goad said.

Learn more about this and other upcoming Benzinga Cannabis events at this link.

Photo by Dez Smith.